Experience with the Phillips Curve Since the 1970s Has Shown

question 17

Multiple Choice

Experience with the Phillips curve since the 1970s has shown that the:

• A) curve can be used as a reliable model to guide public policy.
• B) relationship between the inflation rate and the unemployment rate moves in a clockwise direction.
• C) curve is not stable.
• D) inflation rate and the unemployment rate are equal.

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Definitions:

Spearman's Rank

A non-parametric method used to measure the strength and direction of the association between two ranked variables.

Ordinal

A type of qualitative data that represents categories with a meaningful order or ranking, but without a precise mathematical difference between them.

Mediating Variable

A variable that helps explain the relationship between the independent and dependent variables, acting as an intermediary in the cause-effect relation.